Photo credit: DA

Inflation in the Philippines continued its downward trend, offering relief for many households, especially those in the bottom 30% income bracket. The rate dropped to 2.9% in November 2024, compared to 3.4% in October, signaling improved affordability for essential goods and services. For context, inflation was a much higher 4.9% in November last year.

What’s Driving the Decline?

The drop is largely thanks to slower price increases in food and non-alcoholic beverages, which make up a significant portion of household spending. In November, these items saw a price hike of just 3.3%, compared to 3.9% the month prior. Housing, electricity, water, gas, and other fuels also became slightly less expensive, with growth in prices slowing to 2.4% from October's 3.6%.

There were also smaller increases in costs for recreation, health, and other essentials, helping to keep inflation in check. However, prices for items like alcohol, tobacco, and household furnishings crept up slightly.

Food Prices: A Key Player

Food inflation slowed to 3.4% in November, down from 3.9% in October and significantly lower than the 7.4% recorded in November 2023. The main reason? Rice, a staple in Filipino households, saw a slower price increase of 5.4%, compared to the steep 10.2% rise in October.

Other food groups, like corn, bread, and fruits, also saw price hikes tapering off. Interestingly, vegetables went from being cheaper in October to slightly more expensive in November, but overall food prices remained more stable.

Inflation in NCR and Beyond

In Metro Manila, inflation rose slightly to 3% in November from October’s 2.1%, driven by higher food and utility costs. However, in areas outside NCR (AONCR), inflation slowed to 2.9%, down from October’s 3.3%.

The Bangsamoro region enjoyed the lowest inflation rate at just 1.6%, while Cagayan Valley experienced the highest at 3.9%.

What This Means for You

For families with tighter budgets, the easing inflation is good news, making essentials like food, utilities, and basic goods a bit more affordable. However, some items like alcohol, personal care products, and furnishings still saw slight price increases, so it’s not all smooth sailing.

As the holiday season approaches, this downward trend might offer some financial relief for Filipino households. But keep an eye on food prices, particularly rice and vegetables, as they remain volatile.

The government’s focus on stabilizing food supply and utility costs seems to be paying off, but it’s clear that continued efforts will be needed to keep inflation in check as we head into 2025.